Leasing activity is gathering pace at Great Portland Estates (LSE:GPOR). The London developer signed £17 million of new rent in the second quarter, 7.5% ahead of the estimated rental value, the industry’s benchmark for market rent.
That brings the first-half total to £38 million, matching last year’s full-year figure and putting the group comfortably on course to meet its 4–7% rental growth target for 2025.
Demand remains strongest for the company’s Fully Managed offices, spaces where Great Portland provides services such as fit-out and flexible leases. In prime West End and City sites, where tenants are less price-sensitive, the group is achieving all-in rents north of £300 a square foot.
Deutsche Bank’s Max Nimmo says improving investment market liquidity should allow Great Portland to recycle capital into new projects. Yet the shares, at 324.5p, still trade at roughly a 40% discount to net tangible assets, a steep markdown for a landlord delivering solid leasing momentum.
The broker has a 450p price target and keeps its “buy” rating, arguing that the stock’s valuation does not reflect the healthier tone in London’s top-end office market or the company’s strong operational execution.
The shares were down 1.7% at 319p.